Whenever you’re learning how to invest your money with the properties, you can be certain that you will hear the term equity a lot. As you may know how does equity release work, this is the key to getting profits by using your own property. Even your own personal residence can also be used for getting some extra money for the future. By knowing how does equity release work, you will be able to get profits simply by relying on the inflation.
The calculation of this method is very simple. Equity = Balance + Credit + Floating Profit – Floating Loss. Just use this formula, and it will be easy for you to calculate and predict the profits that you’ll make with your property. However, bear in mind to wait until the inflation is going to happen in your country, or at the very least, if you can predict when the next inflation may happen, then you will be able to get your installment value and interest rate to be lowered, while the value of your property will be increased at the same time.